Business Rates are Changing in April: 4 things charities should watch for

Business rates are being reset in April 2026, and for charities this is a direct question about how much of your donors’ money ends up in buildings rather than services.

With some central London offices expected to see sizeable rate increases, charities in higher-value markets are very much in the splash zone.

1. Check how exposed your building is

• The 2026 revaluation uses April 2024 rental values, which are far closer to today’s market than the pandemic‑era data behind current bills.​
• Colliers’ analysis shows average business rates for London offices could rise by around 9%, with some prime spots forecast much higher – so a charity HQ in a central, well‑connected location could face a sharper jump than a suburban back‑office.​

2. Protect your charitable rate relief

• Most charities are eligible for 80% mandatory relief, but the extra 20% often relied on to get to a “near‑zero” bill is discretionary and reviewed by each council.​
• If your rateable value rises in line with local office markets and the council tightens its approach to discretionary relief, the sector‑wide effect is more overhead at the expense of frontline delivery. Ensuring your occupancy and use are clearly and demonstrably charitable becomes a financial safeguard, not just a compliance point.​

3. Build charity-specific scenarios, not generic ones

• Colliers highlight that some central sub‑markets, such as parts of Midtown and Farringdon, could see forecast increases in rates per square foot that are well above the London average. For a commercial occupier that is painful; for a grant‑dependent charity that is fixed into a lease, it can be existential.​
• Finance teams should model scenarios that are specific to how charities actually operate: income plateaus, funding cycles, and an explicit link between every extra pound of property cost and the volume of services you can no longer deliver. That makes the impact of revaluation very real for Trustees signing off budgets.

4. Use revaluation as a trigger for mission-led property decisions

• Rising rates in prime locations can be the nudge to rethink whether you still need a flagship office, or whether a smaller, more flexible hub could support your teams just as well while freeing up funds for programmes.​
• Many charities are already using valuations and feasibility work to weigh up “stay, shrink, share or sell” – not because property is the mission, but because the right space and a sustainable rates bill make the mission easier to fund year after year.​

In short…

April 2026 is a moment for charity leaders to join the dots between rates, real estate and impact, not to panic.

The organisations that come through this revaluation strongest will be the ones that read the numbers early, understand how their specific building sits in the market, and then make clear‑eyed, mission‑first property decisions rather than waiting for the next brown envelope to force their hand.​

How TSP can support you

If you need a second opinion before April, TSP spends its days turning complex property questions into clear options Boards can actually act on.

Contact us to get started.